Re: clearing houses

Posted by steele in minnesota on January 29, 2009 at 06:03:18:
In Reply to: clearing houses
Posted by linda on January 29, 2009 at 04:50:28:Among real estate agents today, this has to be one of the million dollar questions. So much so that every day some one is coming out with a new training course for agents on how to get rich working with banks and REOs (real estate owned/foreclosed houses). And all their hype and advertising, especially on the Net will make it sound so easy...

Well, it is not. I am a long time REO agent. Every week I get 2-4 emails from agents across the county asking how to break into this business. Just this week I had one from an agent saying that they had bought severeal of the courses and was finding little of any practical use. Definitions, some of the basic practices, but nothing to get them business. Even with lengthy lists of banks and various companies to contact (many prove to be deadends).

The reality is that most banks do not handle their own listings or even foreclosures. They have third party companies do it for them. Asset Management Companies.

These companies handle the foreclosure from beginning to end. They hire the attorneys, the appraisers and yes, the real estate agents.

For the most part they go with established relationships. They work with experienced REO agents with a track record. In most metro areas they will have several to a dozen specialists that they can use.

And when they need someone new in an area they are likely to ask other third party companies for recommendations as opposed to looking at applications.
(Just so you know most of these companies are not even taking applications any more.)

You see, almost of these companies and banks have been under seige by agents who want to do this business. Everyone wants to do it. Dozens of designations have been created by the educators and frankly, they mean little to nothing to the industry. There are a few professional societies out there and even they have begun to close off applications as they have just too many amatuers coming into the business.

So after all my gloom and doom, here are my thoughts. In most area there are established REO agents, sometimes even real estate companies that specialize in this business. I would seriously consider apprenticing under one of these agents. Learn the business.

Otherwise you can do what everyone else does. Buy a bunch of courses and contact lists. Then start applying like crazy. Once in a while you get lucky.

Steele V. Propp
Foreclosure Specialist
Schatz Real Estate Group
Minneapolis, MN
steelep@aol.com
http://www.MinnesotaForeclosureNetwork.com

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